Eying China's voracious demand, Cheniere Energy, ExxonMobil (XOM) and other American energy companies are racing to build more than two dozen expensive facilities to export liquefied natural gas, which is super-cooled natural gas that can be transported by ship.To get more china energy news, you can visit shine news official website.
China even marked President Donald Trump's visit to Beijing last fall by agreeing to invest as much as $43 billion into an LNG project in Alaska.But this pairing of an able buyer and well-supplied seller no longer looks like a slam dunk. As part of the escalating trade war, China on Tuesday said it will impose a 10% tariff on $60 billion of US products -- including LNG.The trade tensions could make it more difficult for the next wave of LNG export facilities to get the financing needed to get off the ground."It's obviously very concerning. The potential for some projects to get delayed is very real,"
said Charlie Riedl, executive director of the Center for Liquefied Natural Gas, a trade group that represents Exxon, Chevron (CVX) and other energy companies.The shale boom created an excess of natural gas in the United States. In a bid to get rid of the glut, the United States began exporting LNG in 2016 when Houston-based Cheniere (LNG) opened the Sabine Pass terminal in Louisiana. Earlier this year, Dominion Energy (D) opened Cove Point in Maryland, the nation's second export facility .China is the big elephant in the room. China's appetite for LNG is growing rapidly.
And it's on the verge of overtaking Japan as the biggest buyer of LNG in the world.That's one major reason why the United States is planning to quadruple its export capacity by building at least 25 new facilities. LNG is a centerpiece of Trump's energy dominance agenda. In the 12 months leading up until June 2018, China was the second-largest buyer of US LNG, according to energy consulting firm Wood Mackenzie. Shell, the US subsidiary of Royal Dutch Shell (RDSA), was the largest seller.However, China has dialed back its US LNG purchases in recent months as trade tensions have ratcheted up, according to ClipperData. Beijing is instead turning more to LNG powerhouses Qatar, Australia and Russia."China has been able to find willing sellers closer to its own backyard," said Matt Smith, ClipperData's director of commodity research.

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